This bulletin provides information for employers and businesses on Coronavirus (COVID-19). All guidance, information and announcements can be found at GOV.UK. Organisations should pay particular attention to the guidance for employees, employers and businesses which is being updated regularly with the latest advice.
The Chancellor of the Exchequer has announced a package of support to help workers, in addition to the package set out for business:
Coronavirus Job Retention Scheme
Under the Coronavirus Job Retention Scheme, all UK employers will be able to access support to continue paying part of their employees’ salary for those employees that would otherwise have been laid off during this crisis. Employers will need to:
Deferring Valued Added Tax (VAT) payments for 3 months.
The deferral will apply from today until the end of June. This is an automatic offer with no applications required. Businesses will not need to make a VAT payment during this period. Taxpayers will be given until the end of the 2020-21 tax year to pay any liabilities that have accumulated during the deferral period. VAT refunds and reclaims will be paid by the government as normal.
Income Tax payments due in July 2020 under the Self Assessment system will be deferred to January 2021.
Income Tax Self-Assessment payments due on the 31 July 2020 will be deferred until the 31 January 2021. This is an automatic offer with no applications required. No penalties or interest for late payment will be charged in the deferral period.
HMRC Time to Pay
HMRC have also scaled up their Time to Pay offer to all firms and individuals who are in temporary financial distress as a result of Covid-19 and have outstanding tax liabilities. You can contact HMRC’s dedicated Covid-19 helpline to get practical help and advice. This can be reached by calling 0800 0159 559
Coronavirus Business Interruption Loan Scheme
A new temporary Coronavirus Business Interruption Loan Scheme, delivered by the British Business Bank, will launch early next week to support primarily small and medium-sized businesses to access bank lending and overdrafts. The government will provide lenders with a guarantee of 80% on each loan (subject to a per-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The government will not charge businesses or banks for this guarantee, and the Scheme will support loans of up to £5 million in value. Businesses can access the first 12 months of that finance interest free.
Request for Business Intelligence
The Government is closely monitoring developments in relation to potential economic impacts on the UK economy and individual businesses and supply chain. We welcome information from businesses on:
Please send your intelligence to firstname.lastname@example.org. We are aware that individual company information may be commercially sensitive, and it will be treated accordingly. Please note that this inbox is only for receiving intelligence only and does not provide business advice.
Department for Business, Energy and Industrial Strategy
Business Intelligence and Readiness Directorate
20 March 2020